Wall Street Rallies on Iran Ceasefire; Intel Surges Following Terafab Partnership

US stock markets opened firmly higher on Wednesday, driven by a wave of optimism following the announcement of a ceasefire deal involving Iran. The Nasdaq Composite gained 2.9%, while the small-cap Russell 2000 saw a more pronounced jump of 3.45%, signaling a broad return of risk appetite among investors. The rally comes as market participants move to buy the dip after a period of volatility triggered by regional conflict. Analysts suggest that if the US reduces its military footprint in the region, a primary driver of recent market instability will be removed, making current S&P 500 valuations more attractive to buyers. In corporate developments, Intel Corp (INTC) shares climbed more than 10% following the announcement that the chipmaker is joining Elon Musk’s Terafab project. The collaboration aims to leverage Intel's manufacturing capabilities to build a proposed chip complex. Wedbush analysts noted that the partnership makes strategic sense, arguing that collaborating with Intel is more viable than Musk's ventures attempting to develop 2nm process technology independently. However, they cautioned that Terafab’s customer base—which includes Tesla’s AI hardware, xAI’s data centers, and SpaceX’s satellite chips—carries a higher risk profile than Intel’s traditional hyperscale cloud providers. The combination of geopolitical easing and high-profile tech partnerships has shifted the immediate market mood toward bullishness, though investors remain attentive to the structural details of the Terafab deal and the stability of the ceasefire.